Gorman-Rupp Reports Third Quarter 2001 Results

The Gorman-Rupp Co. reported a third quarter increase in net sales of 9.6% and a gain in net income of 16.3 percent maintaining record sales and earnings for the nine months ended September 30, 2001.

Third quarter 2001 net sales amounted to $51,430,000 compared to $46,904,000 in 2000, net income was $3,637,000 compared to $3,128,000. Earnings per share equaled $0.42 for the current quarter compared to $0.37 for the corresponding 2000 quarter.

Third quarter 2001 increases in revenues resulted principally from continued demand in the power generation market for product supplied by Patterson Pump Co., the company's wholly owned subsidiary. Operating profit of $5,532,000 reported in the third quarter 2001 was negatively effected by underutilized plant capacity resulting from a slowed economy and decreased 7.2 percent as compared to $5,959,000 in 2000 before the deduction of a non-recurring plant relocation expense of $1,051,000.

Nine month 2001 net sales were $155,939,000 compared to $142,481,000 for 2000 an increase of 9.4 percent and net income amounted to $11,239,000 for 2001 compared to $10,889,000 in 2000 an increase of 3.2 percent, earnings per share amounted to $1.31 an increase of $0.04 from the $1.27 per share reported in 2000.

The backlog of orders at September 30 of $88,233,000 is 24.2 percent above a year ago and is principally supported by the Company's business associated with the power generation and municipal water markets.

Demand by G. E. Power Systems for fabricated components used in the gas turbine power generation industry and pump stations serving the municipal water and wastewater markets principally accounted for the increase in sales. Shipments of pumps into the commercial and original equipment markets remain sluggish due to the economic downturn.

The company is pleased with the nine month results in light of the slowdown in the U.S. economy and remains optimistic with the order backlog, global emphasis in power generation and expanding environmental awareness in water and wastewater.